External Debt Problem

If interest rates rise, countries with high external debt and public debt will need to reduce their debt to maintain their economies.  External debt as percentage of Gross Domestic Product (GDP) is the ratio between the debt a country owes to non-resident creditors and its nominal GDP. By comparing what a country owes to what it produces, the debt-to-GDP ratio indicates the country's ability to pay back its debt.

The relatively low interest rates we’ve seen since 2008 sent the world on a borrowing spree. There are a few casualties including Venezuela and several cities in California.

Global debt is currently $233 trillion and needs to come down. The countries with the highest external debt are as follows:

Ireland – 906.67% external debt to GDP, 71.82% public debt to GDP, national debt $218.751 billion, GDP $304.580 billion.

Netherlands – 524.86% external debt to GDP, 58.544% public debt to GDP, national debt $455.303 billion, GDP $444.400 billion

Belgium - 309.25% external debt to GDP, 109.64% public debt to GDP, national debt $511.698 billion, GDP $466.704 billion.

Greece – 308.34% external debt to GDP, 183.75% public debt to GDP, national debt $375.597 billion, GDP $198.601 billion.

UK – 261.49% external debt to GDP, 93.8% public debt to GDP, national debt $2.466 trillion, GDP $2.629 trillion.

Switzerland – 249.05% external debt to GDP, 31.74 public debt, national debt $212.384 billion, GDP $667.110 billion.

France – 227.46% external debt to GDP, 102.66% public debt to GDP, national debt $2.532 trillion, GDP $2.466 trillion.

Portugal – 222.18% external debt to GDP, 56.323% public debt, national debt $283.190 billion, GDP $204.636 billion.

Spain – 195.59% external debt to GDP, 106.06% public debt, national debt $1.308 trillion, GDP $1.233 trillion.

Sweden – 188.67% external debt to GDP, 39.675% public debt, national debt $202.820 billion, GDP $511.194 billion.

Germany – 161.03% external debt to GDP, 64.77% public debt, national debt $2.253 trillion, GDP $3.480 trillion.

Australia – 124.34% external debt to GDP, 54.938% public debt, national debt $694.091 GDP $ 1.262 trillion.

Canada – 114.29% external debt to GDP, 99.9% public debt, national debt $1.529 trillion, GDP $1.530 trillion.

US – 97.435% external debt to GDP, 71.61% public debt to GDP, national debt $21.180 trillion, GDP $20.067 trillion.

http://www.usdebtclock.org/world-debt-clock.html

Norb Leahy, Dunwoody GA Tea Party Leader